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sell your
products on
Amazon
The Beginner’s Guide
FAHIM NAIM
Chapter 1
Introduction to Selling on Amazon 1
Chapter 2
The Opportunity in Marketplaces 3
Chapter 3
What You Need to Sell on Amazon 8
Chapter 4
Competitor Analysis: How to Win the Buy Box 16
Chapter 5
Product Listing Optimization 21
Chapter 6
Promotion Strategies on Amazon 32
Chapter 7
Selling on Amazon Tips: What Not to Do, Pitfalls, and Myths 37
Chapter 8
Conclusion40
i
Chapter 1 Introduction to Selling on Amazon
1
Chapter 1
Introduction to
Selling on Amazon
Your online store is your home base, where you showcase your brand,
connect with your audience and ultimately sell your products. That said,
there are now many ways to reach and sell to existing and new audiences
with Shopify channels. In particular, Shopify’s new Amazon integration
offers you the opportunity to connect with potential customers searching
on its marketplace. With all of your products managed in Shopify, you
can create Amazon listings, link already existing Amazon listings, sync
inventory, and fulfill orders. For more details on setting up Shopify’s Amazon
channel, use this step-by-step guide and install the channel here.
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Chapter 1 Introduction to Selling on Amazon
Shopify’s integration with Amazon is exciting news for many brands, and
it’s okay to have questions: Why should I sell on Amazon? How do I manage
pricing between my Shopify store and Amazon? What does it take to grow
a business on Amazon, and for the long-term? What options and programs
are available on Amazon that I should utilize?
The goal of this guide is to tackle these questions and help you understand
how to create and grow a profitable and sustainable business on Amazon.
I’m a former Amazon Category Manager, and now run an ecommerce
consultancy that helps dozens of brands sell on Amazon.
I believe in growing your business for the long term, and not wasting time
on short-term hacks that can put your account at risk for getting suspended
or terminated. I certainly believe that things can be done quickly, since that
is especially required in ecommerce, while at the same time be on the right
side of the terms of service and guidelines set by Amazon. If this interests
you, keep on reading.
2
2
Chapter 2 The Opportunity in Marketplaces
Chapter 2
The Opportunity in
Marketplaces
Branded Store vs. Marketplace
Often times when I meet an entrepreneur or someone representing a large
brand, they tell me they “only sell on their own website” (often referred to as
‘direct to consumer’), or they “only sell on Amazon.”
When I follow up and ask why, they believe it’s best to only focus on
one channel. I typically hear responses like: “I want to own the entire
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Chapter 2 The Opportunity in Marketplaces
While I’m not entirely ruling out this ‘all or nothing’ approach since it
work for some brands and sellers, I’m a big believe that most brands can
profitability grow their business if they do both: have their own branded
store and sell on marketplaces (i.e. Amazon).
Several reasons are listed below, but in summary you can use both a branded
web store and marketplaces to complement each other. It reduces customer
dependency on a single sales channel, but also provides customers an option
for additional discoverability and buying features. Many customers are die-
hard Amazon customers (example: I buy everything from my toilet paper to
cereal on Amazon), so by exposing your products to these regular Amazon
users, there’s a higher likelihood, they’ll find you and purchase from you
through the channel they’re already comfortable with.
Those with less allegiance to Amazon may enjoy the experience of browsing
your website and engaging with your brand. Your email subscription offer,
remarketing ads and social media profiles make it easier to stay in touch
with these more brand-focused shoppers.
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Chapter 2 The Opportunity in Marketplaces
The point is that many successful brands use both their branded web store
and their presence on marketplaces to sustainably grow their business and
that’s why the Shopify-Amazon integration was created.
As this trend continues, it’s inevitable that customers will search for your
product on Amazon, whether you decide to sell on its marketplace or not.
Nearly 9 out of 10 customers check Amazon even if they find a product they
want directly on a retailer’s site.
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Chapter 2 The Opportunity in Marketplaces
Often the worry is that Amazon will cannibalize all of your sales but the
reality is that you can often maintain a healthy branded website in addition
to Amazon. If done correctly, Amazon can become a great complement to
your Shopify business very quickly.
For example, Casper Mattress has healthy reviews on Amazon, but has
almost 9x more reviews on their own site. The positive reviews on Amazon
give Casper strong credibility for those considering buying on Casper’s
site, and it also helps Amazon customers discover Casper’s recommended
products. Additionally, there are several value-added services offered on
Casper.com that can win over customers from purchasing on Amazon.
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Chapter 2 The Opportunity in Marketplaces
Should you trust an unknown party to manage the content, pricing, and
exchange with customers on behalf of your brand? I assume most of you are
shaking your head saying “no”, and with good reason. For example, below
are customer complaints about a Shark Tank product being sold by a third-
party seller with no affiliation to the brand, and with a list price nearly 3x the
price on the brand’s store.
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Chapter 3 What You Need to Sell on Amazons
3
Chapter 3
Secondly, you can get overwhelmed with all of the different terms, acronyms,
programs, and requirements to sell on Amazon. I recommend you start off
with a few products and test the waters before exporting all of your eligible
products to Amazon as there will naturally be a learning lesson along the
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Chapter 3 What You Need to Sell on Amazons
way. Finally, it is worth understanding what available options are out there
for your products and which to pursue.
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Chapter 3 What You Need to Sell on Amazons
While there is overlap between features available on the Seller vs. Vendor
Portals, we will primarily focus the remainder of this post on features available
on Seller Central since this is the focus of the Shopify-Amazon integration.
It is critical that you maintain healthy performance target rates (i.e. order
defect rate, late shipment rate, etc.) to prevent customers from having a
poor customer experience. Amazon will typically give you notifications and
warnings if you fall below those thresholds, and it may sometimes suspend
the offer of a specific listing while it asks you to remedy any current issues.
If the issues continue to exist, it can result in an overall account suspension,
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Chapter 3 What You Need to Sell on Amazons
which then requires you to submit a Plan of Action (‘POA’) to plead why you
should have your selling privileges restored.
Another, and more common, reason for account suspensions is for engaging
in activities that Amazon states is a violation of their TOS. Examples include
incentivizing unauthorized reviewers with free products or money, selling
counterfeit items, rights owners notice complaints, soliciting only positive
feedback from reviewers, and more. Additionally, opening up a second
account without approval for multiple accounts could lead to a suspension.
Amazon also handles customer service and returns for FBA products,
and the products become Prime Eligible as a result of the FBA program
(this makes your products eligible for Free Two-Day shipping for Prime
customers or Free Standard Shipping for Non-Prime customers).
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Chapter 3 What You Need to Sell on Amazons
several estimates from other firms claim that Prime Members spend at least
2-3 times more than non-Prime members.
In summary. if you do not use FBA, then you are responsible for storage,
fulfillment, customer service, and returns for your product. Follow these
instructions to connect Shopify with Fulfillment by Amazon.
Amazon estimates that SFP listings that became Prime Eligible for the first
time saw an average sales lift of more than 50%. Also worth noting that there
is no additional cost to brands to enroll in SFP outside of the shipping cost.
Brand Registry
The Brand Registry program has gone through several recent changes at
Amazon, providing private label sellers with registered trademarks access
to a variety of new tools. Namely, brand registry now requires a brand to
register their character/word trademarks with the USPTO (or relevant
government trademark office), and that the trademark must match the
brand name printed on products or packaging.
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Chapter 3 What You Need to Sell on Amazons
This allows brands to utilize the brand registry tool to report and better
manage their registered copyright or trademark infringements. Additionally,
brand registry is now a requirement for several new tools that are opening
up to sellers, including EBC (see section below), Amazon Stores (a new
storefront for brands to showcase their brand and products, Headline Search
ads, and more.
Business Reports
Seller Central has a rich interactive dashboard that allows you to track
several key metrics including sales, traffic, and conversion rates (note traffic
and conversion rates are not available to Vendors currently). It gives you the
ability to look at this for several different time ranges and rollups, identify
sales trends and new opportunities, analyze refunds and negative feedback,
and much more. I highly recommend spending some time getting familiar
with the reporting options as you will inevitably uncover data that will
influence your approach to growing your products (i.e. products to increase
traffic via ads, items that have product issues or high returns and need to be
improved/discarded, etc.).
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Chapter 3 What You Need to Sell on Amazons
minutes, you can export your listings to the other country marketplaces,
adjust pricing rules, exclude products that you do not want to sell, and
much more.
Amazon Exclusives
Exclusives is a pre-approved sellers-only program on Amazon that helps
showcase brands of exciting and innovative products that can only be
found on Amazon and that brand’s site or store. Brands that are approved
into the program gain access to several opportunities to drive traffic and
conversion to their Amazon pages, including incremental merchandising
and promotional opportunities, promotional tools, enhanced detail pages
including product videos, and a Brand Development team to assist with
managing your Brand on Amazon.
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Chapter 3 What You Need to Sell on Amazons
15
Chapter 4 Competitor Analysis: How to Win the Buy Box
4
Chapter 4
Competitor
Analysis: How to
Win the Buy Box
The first step in promoting your Amazon listing is to understand what
you’re up against. For most categories, you can learn a tremendous amount
about what customers want and don’t want based on competitor pages.
Additionally, reviewing complementary products regularly can alert you to
best practices and promotional opportunities. Analyze competition with the
following factors in mind.
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Chapter 4 Competitor Analysis: How to Win the Buy Box
Customer Reviews
Customers are very clear on what their preferences are, and often times
can lead you to future product enhancements or ideas. Are customers
complaining about packaging? How many customers mention price in
their reviews? What other products have they mentioned trying in the
same category?
Updating Frequency
How often are competitors updating product content, pictures, or other
content? Are they cycling through seasonal photos (i.e. Christmas or
Halloween themed?) Do they have clearer messaging of product benefits
and usage than you do? How often are they changing pricing and what effect
does that seem to have on their Best Seller Rank?
Complementary Products
For complementary categories (for example, memory cards and cameras),
what are those brands doing well in? Is there an opportunity to cross-
promote with them? Are there any insights on their customer reviews about
what lead them to that purchase and how that may affect how they search for
your product? Does it make sense to target those category keywords on your
Sponsored Product campaigns?
While every category can be different, for most categories you can create a
strong brand on Amazon without having to be the lowest cost player. If you
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Chapter 4 Competitor Analysis: How to Win the Buy Box
are a premium brand, for example, you may not have to always compete with
other brands on price but perhaps by review quality, assortment, availability,
etc. In many categories you will notice that the Best Sellers aren’t necessarily
the lowest cost options. Solid State Drives, for example, are commodity
products that you would likely believe customers would always turn to
the cheapest product. As in this example below, Best Sellers that have built
enough reviews and customer trust are able to charge a premium versus
other competitors.
Buy Box
If you have been selling on Amazon or have started researching becoming
a seller, you have inevitably come across the term ‘buy box’. The concept is
simple, although the execution to manage it can be much more difficult.
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Chapter 4 Competitor Analysis: How to Win the Buy Box
Nearly every detail page has the option for other qualified sellers to also list
their offer for that ASIN (Amazon’s sku identifier). So even if you are the
manufacturer of a product, another seller could potentially undercut your
price on the same item and be the default option on that detail page - or ‘win
the buy box’. The exception is for brands that have brand gating, which is
extremely difficult to get approved.
As you can see on the screenshot below, ‘DreamWater’ is winning the buy
box for this ASIN but there are several other sellers listing an offer on the
“Other Sellers on Amazon” section.
The algorithm for who wins the buy box is proprietary, but the main
components are price, prime eligibility, shipping cost, quantity, and seller
rating. As you can probably guess, price will have a major impact, but
being Prime Eligible and having a high seller rating can sometimes be the
difference between you winning or losing the buy box.
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Chapter 4 Competitor Analysis: How to Win the Buy Box
Technically, each unique product should only have one ASIN (one UPC
to one ASIN), but sometimes you will see several different listings for
the same product, which is a confusing and frustrating experience for
customers. Amazon continues to crack down on duplicate listings and gives
Brand Registered sellers the ability to merge duplicate pages, so it’s best to
play by the rules and avoid looking for ways to create a separate page with
less competition.
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5
Chapter 5 Product Listing Optimization
Chapter 5
Product Listing
Optimization
How Amazon SEO Works
Spend enough time searching for tips on how to optimize your Amazon
business and you are sure to come across dozens of SEO and keyword tools
out there. Some of them promise hacks that are guaranteed to get you to
a top ranking, others say they ‘trick’ the search algorithm to feature your
product first.
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Chapter 5 Product Listing Optimization
Typically, I’m weary of black hat tricks and hacks that promise to outsmart
the system. While some of the tools come in handy in certain scenarios,
what I would recommend is to approach Amazon SEO from Amazon’s
viewpoint. More than 80% of customers never scroll to Page 2 of a search,
so how can you ensure that customers are happy and continue to purchase
on Amazon? By providing relevant products that have a high possibility of
converting into purchases.
Thus, what keywords do you think customers are searching for when they
are discovering your product? Have you included those terms in your
keyword field when setting up your product (i.e. ‘backend’ keywords)? What
products typically show up for your desired search terms, and how are they
priced and how many reviews do they have relative to your product? How
can you increase sales velocity in a short amount of time (i.e. Promotion) so
that you move up the rankings?
Also, keep in mind that going out of stock is like slamming the brakes on
your momentum, especially if there aren’t any other resellers on your listing.
Being out of stock will hurt you with rankings and search relevancy during
that time period, and gives customers another reason to try a competitor’s
product. One tip: If you do run out of stock on your FBA inventory, create a
FBM offer to mitigate the potential lost traffic.
I have seen hundreds of examples of brands that showed up on the first page
of search or were even a Best Seller in their category, but after going out
of stock for a few days lost that positioning and it sometimes takes weeks
or months to regain that position. In those cases, a competitor’s listing
increases visibility and unless you have extremely strong brand recognition,
it is difficult to convince customers to switch back to your product after they
bought/used another product.
FBA storage fees in most cases are small enough that I would highly
recommend having a 2-3 month buffer of inventory available at all times (or
at least when possible).
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Chapter 5 Product Listing Optimization
Pricing Parity
Your selling agreement with Amazon includes a pricing parity clause. Your
item price and total price can’t be lower at any other online sales channel
according to the ‘general pricing rule’. This includes your own Shopify site.
Avoid a potential account suspension for not following this mandate and
ensure that you price Amazon as low as your other channels.
Automate Pricing
Since Amazon is a marketplace, you may very well be competing against
other third parties to ‘win the buy box’. There are several repricing tools
available on the market, and Amazon recently released the ‘Automate
Pricing’ tool on Seller Central to help you automate pricing decisions. For
example, you can set a rule to beat the buy box by 2% until you reach a
certain floor.
Ensuring you are winning the buy box regularly, and being alerted when you
are losing the buy box, is essential to growing your Amazon business. Note
that pricing for Vendors has a different process from Marketplace Sellers.
Promotions are a great way to increase visibility and gain reviews. Lightning
Deals, price discounts, best deals, coupons, buy one get one offers, discount
codes etc., are all great opportunities to offer and highlight a temporary
discount to your product. This benefits you by not only allowing you to
sell more units in a short amount of time, but it also temporarily lifts your
baseline business post promotion (i.e. you move from #50 best seller to #10
when your promotion ends, likely increasing your run-rate temporarily at
your regular price).
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Chapter 5 Product Listing Optimization
The reasons why this is not recommended, and instead a stronger everyday
price (‘EDLP’) is preferred, are simple. For one, this creates a huge range and
arbitrage opportunity for other sellers to buy your product when you are on
sale, and undercut your price to win the buy box when you are not on sale.
Additionally, many online shoppers are savvy and utilize pricing tools to
track pricing. If it is obvious that you lower the price dramatically once a
month, customers will simply wait until your price drops.
Finally, because the Best Seller Ranks and Search Algorithms are constantly
updating, you may drop in search results when you are not on sale, and
increase when you are back on sale. If this is the case, you are probably better
off limiting the high-low model and moving to a stronger everyday price so
that you can build momentum in your rankings over time and continue to
gain more reviews.
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Chapter 5 Product Listing Optimization
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Chapter 5 Product Listing Optimization
Variations
Variations allow you to easily display to customers the various size, color,
style, etc. options you have for your product. While each product will still
have it’s own unique ASIN and detail page, variations present customers
the ability to quickly switch between options of a product, and equally
important pool reviews amongst those ASINs. For example, if you are selling
an iPhone case in black, blue, and silver, a variation will allow customers
to easily hover over the various color combinations, and the reviews for all
of those options will be pooled together (i.e. the black gets 5 reviews, blue
gets 3 reviews, and silver gets 2 reviews, the review count displayed for all
options would be 10).
Here is an example of a detail page before and after it updated the key items
to maximize conversion.
Before updates:
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Chapter 5 Product Listing Optimization
After updates:
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Chapter 5 Product Listing Optimization
Here are some additional key items to keep in consideration when setting up
or updating detail pages:
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Chapter 5 Product Listing Optimization
Respond Regularly
Regularly check your pages for questions and new reviews. Many
customers spend more time reviewing customer questions and reviews
than a brand’s published content, so be sure to regularly check and respond
to these as necessary.
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Chapter 5 Product Listing Optimization
The good news is that the recent change makes things more of a level playing
field since brands were essentially penalized for not getting incentivized
reviews if their competitors were.
So, what can you do to get reviews? Start with email follow-ups.
You can, however, send a few emails confirming you have received an order,
and also following up on an order requesting them to leave a review or
seller feedback.
There are tons of best practices out there, but I’d recommend sending no
more than 2-3 emails: one during the order confirmation or delivery phase,
and one a few weeks after the product was received. Avoid making your
emails feel too ‘spammy’ or aggressive, and give customers an outlet to share
negative feedback directly with you prior to writing a negative review.
Yet another way to get reviews is by asking previous customers (or ‘backers’
if you were crowdfunded) to leave you a review on Amazon. As long as you
are not incentivizing people to leave a review (i.e. “I’ll give you a $5 credit”
or “You’ll be entered into a sweepstakes”), this is a safe and legitimate way
to garner reviews. Customers don’t have to actually buy the product on
Amazon to leave a review (although those show as ‘verified purchases’), so a
customer who has purchased your product elsewhere such as your Shopify
store is eligible to leave a review for your product on Amazon as long as they
have an account.
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Chapter 5 Product Listing Optimization
Finally, Amazon does offer programs such as the Early Reviewer Program,
and there are rumors that it has just started to roll out the Vine Program to
select sellers, so both are potential opportunities to encourage reviews.
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6
Chapter 6 Promotion Strategies on Amazon
Chapter 6
Promotion
Strategies on
Amazon
Run Sponsored Product Ads
Amazon has a robust ad platform that allows you to market your product to
customers on Amazon.
Amazon Sponsored Product Ads is a PPC (pay per click) model that allows
you to promote your products along search results. Placements on desktop
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Chapter 6 Promotion Strategies on Amazon
I could write an entire guide about Sponsored Ads but here are three
important steps to get up and running quickly:
Step 1: Start with automatic targeting. This allows Amazon to use its
powerful search algorithms to suggest an exhaustive list of potential
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Chapter 6 Promotion Strategies on Amazon
keywords for you. This requires you to pick a flat default bid across all
keywords, but the goal here is to get data on how various keywords perform.
Step 2: Once you have at least a few weeks worth of data (the longer the
better), start evaluating your automatic targeting campaign to determine
which keywords performed the best. You will want to transition those over
to a manual campaign, where you can now focus on only the most relevant
keywords that performed well for you. With a manual campaign, you have
the ability to adjust bids by keyword
Step 3: Continue to iterate your manual campaign for keywords and bids.
Data is your best friend, but if you feel strongly that you should include
additional keywords that haven’t yet performed well, test various bid
amounts. Different bid amounts can yield various placements and yield
varying results, so continue to test until you find something that works well.
There are several keyword and additional third party tools out there to help
build a relevant list of long-tail keywords, but again I believe starting with
above could get you relatively far without getting overwhelmed or requiring
to invest in incremental headcount to get your ads up and running. You can
certainly take these steps further to optimize your ads depending on your
resources, but if not this is a great way to get the process started quickly.
Note: Keep an eye out on the keywords that are working best, and be sure that your
detail pages are utilizing these words in some regard. For example, if ‘organic’ is a
keyword that is converting well, ensure that ‘organic’ is in your detail page title.
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Chapter 6 Promotion Strategies on Amazon
Lightning Deals for most sellers are invite-only in a sense since you can only
run them when they show up on your ‘see all recommendations’ section of
the screen on Seller Central, and there is often a nominal cost associated
with running this deal. For big events such as Prime Day and during the
Holidays, Lightning Deals can be very successful in selling hundreds to
sometimes thousands of units in a few hour period, and also helping new
customers discover your brand, even if they don’t buy it immediately.
As you can see in the example below, Lightning Deals are run across many
different categories, including health and personal care, home and kitchen,
consumer electronics, fashion, grocery, and much more. Again, this is a
great way to not only sell units in the short term but also for trial and to win
new customers for future purchases.
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Chapter 6 Promotion Strategies on Amazon
If you’re new to Shopify and Amazon, learn more about the integration
here. If you’re already selling with Shopify, add the Amazon sales
channel here.
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7
Chapter 7 Selling on Amazon Tips: What Not to Do, Pitfalls, and Myths
Chapter 7
Selling on
Amazon Tips: What
Not to Do, Pitfalls,
and Myths
There is no shortage of so-called ‘Amazon experts’ out there, but
unfortunately much of the information I have seen published is either
incorrect, gives false hope, or approaches the topic in a roundabout way.
Here are some key points on what not to do:
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Chapter 7 Selling on Amazon Tips: What Not to Do, Pitfalls, and Myths
Product Misrepresentation
A study by Shotfarm found that 87% of consumers are unlikely to shop
with a brand again after purchasing an item misrepresented but its product
description, and 42% of US consumers have returned something due to
discrepancies in product descriptions.
Avoidable Out-of-Stocks
Unless there is a supply shortage on your end, going out of stock kills your
momentum, rankings, and sales potential. FBA short-term storage fees are
cheap, especially for small products, and in almost every case it is worth
having excess inventory available at Amazon Fulfillment centers to buffer
spikes in demand. There’s also the backup option of Fulfillment by Merchant.
Do what you can to avoid going out of stock.
Additionally, you may have missed out on the recent influx of negative
customer reviews that complain about a product issue that you weren’t aware
of due to a recent shipment of bad product sent to Amazon. Understanding
that as a seller or brand you may have hundreds or thousands of pages, it is
critical that you at least check your top selling pages frequently and invest in
technology that streamlines these tasks across your entire catalog.
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Chapter 7 Selling on Amazon Tips: What Not to Do, Pitfalls, and Myths
incentivize reviews), what inserts you are able to put in your packaging,
etc. If you’re always looking for a shortcut and to boost your rankings in
the short-term by engaging in something that is a violation of the Terms of
Service, you are jeopardizing your account and credibility on Amazon.
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Chapter 8 Conclusion
8
Chapter 8
Conclusion
At first glance, Amazon can seem like a challenger to your business; a global
marketplace, a massive audience, a go-to destination for consumer search.
However, when approached properly, Amazon can actually help your
brand take-off. Listing optimization can help you get discovered by a global
audience and unlock new markets for you. In-Amazon promotions can
elevate your brand atop the competition giving you centerstage in front of a
highly qualified audience.
Your online store is your home base and Amazon is your opportunity to
reach massive new audiences. Strategic planning, experimentation and some
hustle will get you a long way to successfully selling on Amazon.
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Chapter 8 Conclusion
If you’re ready to start selling on Amazon, install the sales channel now.
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About the Author
Fahim Naim
Fahim was previously a Category Manager at
Amazon where he owned and managed a multi-
hundred million dollar category and one of the
largest categories at Amazon. In under one year,
Fahim was able to grow his business by 50%+
despite a flat market. He founded eShopportunity
in 2014 to help brands better understand and
manage their online business. Fahim has been a
speaker at several leading e-commerce conferences,
webinars, and podcasts, including IRCE (2015 -
2017), keynote speaker at SLI Connect, has been
featured in a variety of publications, and much more.
eShopportunity’s current clients continue to benefit
from Fahim’s expertise and have achieved rapid
growth through execution of his recommendations.
Many clients have achieved massive growth as a
result of partnering of eShopportunity.
Disclaimer: Any of the logos, design rights, trade, service or collective marks that are
mentioned, used or cited in this book are the property of their respective owners.
Their use in this book does not imply that you may use them for any purpose other
than for a similar informational use.
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